Wheat snaps 6-session winning streak; corn, soybeans also down

Corn futures also drop 2.4%, soybeans fall after recent gains

  
A health worker uses an infrared thermometer to check the temperature of a labourer sitting on wheat crop in a tractor trolley at an entry gate of a wholesale grain market, during a nationwide lockdown to slow the spreading of coronavirus disease (COVID-19) in Chandigarh, India, April 20, 2020.

A health worker uses an infrared thermometer to check the temperature of a labourer sitting on wheat crop in a tractor trolley at an entry gate of a wholesale grain market, during a nationwide lockdown to slow the spreading of coronavirus disease (COVID-19) in Chandigarh, India, April 20, 2020.

Reuters/Ajay Verma

SINGAPORE/PARIS- Chicago wheat futures retreated more than 2% on Thursday after six straight sessions of gains, although losses were limited by concerns over dry weather curbing yields in top exporters Russia and the United States.

Corn and soybeans also slid.

"The weather situation is not good, it has been really hot and dry in the United States," said Phin Ziebell, an agribusiness economist at National Australia Bank in Melbourne.

"But for now, we feel the supply situation has been factored into the market."

The most-active wheat contract on the Chicago Board of Trade (CBOT) fell 2.4% to $6.93-1/2 a bushel, as of 1120 GMT. It scaled a two-month peak on Tuesday after official data underscored poor conditions for drought-hit U.S. spring wheat.

"In view of the continuous rise observed and the levels reached, an easing movement has been observed since this morning," French consultancy Agritel said in a note.

Corn lost 2.4% to $5.55 a bushel and soybeans Sv1 gave up 1.7% to $13.66-1/4 a bushel.

The wheat market is being underpinned by crop concerns in North America and the Black Sea region.

Russia's agriculture ministry said yields from the harvest of the country's wheat crop averaged 3.45 tonnes per hectare as of July 20, down from 3.47 tonnes per hectare a year earlier. 

Operators will watch the release later in the day of weekly export sales data.

Commodity funds were net buyers of CBOT corn, wheat and soymeal contracts on Wednesday, traders said. They were net sellers of soyoil and even in soybeans.

(Reporting by Naveen Thukral; Editing by Subhranshu Sahu and Tomasz Janowski) ((naveen.thukral@thomsonreuters.com; +65-6870-3829; Reuters Messaging: naveen.thukral.thomsonreuters.com@reuters.net))


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